ECONOMIC AND FUNDING ANALYSIS
PROJECTS
Assessing agglomeration impacts in Auckland
Ministry of Economic Development (March and October 2007)
Phase 1: This paper looked at whether agglomeration effects are occurring in Auckland. Agglomeration refers to a continuous urban area such as Auckland. The approach used was based on a study of the economic benefits described in the London Crossrail Project. Ascari investigated the relationships between accessibility and employment density as well as employment density and productivity. We found agglomeration affects equivalent to that reported in overseas literature. Our model was based on Workplace 2001 Census area unit data and data from the Auckland regional transport and Auckland passenger transport models.
Phase 2: Building on the above, Ascari set out to provide a richer picture of the productivity benefits in Auckland’s CBD. We investigated the impact of sectoral composition and educational attainment. While both these factors appeared to have an effect, employment density still appeared to be the major driver. Multiple linear regressions were used to assess the robustness of the relationships presented in the paper.
These papers were developed in conjunction with Richard Paling Consulting and are on the Ministry’s website as Occasional Papers (Phase 1 and Phase 2).
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